Philip Morris (PM) Gains As Market Dips: What You Should Know
Philip Morris (PM) closed at $102.25 in the latest trading session, marking a +0.86% move from the prior day. This move outpaced the S&P 500's daily loss of 0.54%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the seller of Marlboro and other cigarette brands had gained 7.51% over the past month, outpacing the Consumer Staples sector's loss of 1.36% and the S&P 500's loss of 7.87% in that time.
Wall Street will be looking for positivity from Philip Morris as it approaches its next earnings report date. This is expected to be February 10, 2022. On that day, Philip Morris is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 2.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.73 billion, up 3.9% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Philip Morris. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.16% lower within the past month. Philip Morris is currently a Zacks Rank #4 (Sell).
Investors should also note Philip Morris's current valuation metrics, including its Forward P/E ratio of 16.07. For comparison, its industry has an average Forward P/E of 9.9, which means Philip Morris is trading at a premium to the group.
Meanwhile, PM's PEG ratio is currently 2.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PM's industry had an average PEG ratio of 2.04 as of yesterday's close.
The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 248, putting it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PM in the coming trading sessions, be sure to utilize Zacks.com.
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